Donald Trump Escalates Feud With Elon Musk, Threatens Tesla, SpaceX Support

U.S. President Donald Trump on Tuesday threatened to cut off the billions of dollars in subsidies that Elon Musk’s companies receive from the federal government, in an escalation of the war of words between the president and the world’s richest man, one-time allies who have since fallen out.

The feud reignited on Monday when Musk, who spent hundreds of millions on Trump’s re-election, renewed his criticism of Trump’s tax-cut and spending bill, which would eliminate subsidies for electric vehicle purchases that have benefited Tesla, the leading U.S. EV maker. That bill passed the Senate by a narrow margin midday Tuesday.

“He’s upset that he’s losing his EV mandate and … he’s very upset about things but he can lose a lot more than that,’ Trump told reporters at the White House on Tuesday.

Though Musk has often said government subsidies should be eliminated, Tesla has historically benefited from billions of dollars in tax credits and other policy benefits because of its business in clean transportation and renewable energy. The Trump administration has control over many of those programs, some of which are targeted in the tax bill, including a $7,500 consumer tax credit that has made buying or leasing EVs more attractive for consumers.

In response to Trump’s threats, Musk said on his own social media platform X, “I am literally saying cut it all. Now.”

He later added that he could escalate the exchange with Trump but said, “I will refrain for now.”

Musk replying on X: “So tempting to escalate this. So, so tempting. But I will refrain for now.”

Trump says will ‘take a look’ at deporting Musk

The gloves may be coming off in this fight between the world’s richest man and the world’s most powerful.

Trump told reporters Tuesday his administration will “have to take a look” at deporting Elon Musk after the billionaire reignited the feud with the president over his spending bill.

Musk, a South African national and a naturalised U.S. citizen, made several weekend X posts slamming Republicans over the “Big Beautiful Bill,” arguing that it was adding more debt.

“It is obvious with the insane spending of this bill, which increases the debt ceiling by a record five trillion dollars that we live in a one-party country – the porky pig party!!,” Musk posted Monday afternoon. In political terms, “pork” generally refers to spending in lawmakers’ constituencies.

Trump pushed back with a Truth Social post early Tuesday, claiming Tesla CEO Musk was upset about the bill eliminating the electric vehicle (EV) mandate and that “Elon would have to close up shop and head back home to South Africa.”